Market Overview

Deutsche Bank Believes Green Dot Could Be Affected By NetSpend Concerns

Share:

In a report published Wednesday, Deutsche Bank analyst Ashish Sabadra reiterated a Hold rating and $21.00 price target on Green Dot Corporation (NYSE: GDOT).

In the report, Deutsche Bank noted, “On its earnings call today after the close, TSS announced the rollout of NetSpend prepaid card at all the Walmart locations in the US by end of November. We believe the increased competition could impact GDOT FY15 revenues; however, additional information on NetSpend's prepaid card fees and product placement should provide more clarity on the risk from the competitive product. WMT had introduced AXP's Bluebird in Oct 2012 and the Serve card in August 2014. The increased competition along with the higher compliance costs have weighed on GDOTs growth at WMT. GDOT revenues at WMT declined double-digit to 55% of total revenues in 2Q14 from 65% of revenues in 2Q13 (GDOT attributed the decline in increased usage of fee waiver plan). In addition, WMT lowered the MoneyCard fees which could negatively impact revenues but bolster card sales. Launch of GoBank distribution at WMT helps strengthen relationship but we do not anticipate material contribution to revenues in FY15. In addition, discontinuation of the MoneyPak product starting 2015 could also weigh on the revenue growth.”

Green Dot Corporation closed on Tuesday at $22.04.

Latest Ratings for GDOT

DateFirmActionFromTo
Oct 2019MaintainsHold
Oct 2019UpgradesMarket PerformOutperform
Sep 2019Initiates Coverage OnHold

View More Analyst Ratings for GDOT
View the Latest Analyst Ratings

Posted-In: Ashish Sabadra Deutsche BankAnalyst Color Reiteration Analyst Ratings

 

Related Articles (GDOT)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
REALDA DavidsonInitiates Coverage On22.0
RVLVDA DavidsonInitiates Coverage On19.0
SFIXDA DavidsonInitiates Coverage On27.0
CONNKeyBancDowngrades
PENNJP MorganMaintains29.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

UPDATE: Compass Point Downgrades AmTrust Financial Services Ahead Of Earnings Report

Phillips 66 Earns $1.2 Billion In Q3